Question

Four dealers advertise the same list price for a TV set. Which one of the following discount series is more advantageous to the customer?

• A. 25% and 8%
• B. 22% and 8%
• C. 25% and 9%
• D. 25% and 10%

Answer 1

The correct option is D 25% and 10%

Let the price of TV be $x$

A. $25\%$ and $8\%$ successive discounts

$\Rightarrow$ Net price $=\frac{(100-25)}{100}\times \frac{(100-8)}{100}x$

$=0.69x$

B. $22\%$ and $8\%$ successive discounts

$\Rightarrow$ Net price $=\frac{(100-22)}{100}\times \frac{(100-8)}{100}x$

$=0.7176x$

C. $25\%$ and $9\%$ successive discounts

$\Rightarrow$ Net price $=\frac{75}{100}\times \frac{91}{100}x$

$=0.6825x$

D. $25\%$ and $10\%$ successive discounts

$\Rightarrow$ Net price $=\frac{75}{100}\times \frac{90}{100}x$

$=0.675x$

$\therefore$ D is the most advantageous discount series for the customer.